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help please a. If each stock is priced at $140, what are the expected net percentage returns on each stock to (i) a pension fund
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a. If each stock is priced at $140, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3% ), and (iii) an individual with an effective tax rate of 15% on dividends and 10% on capital gains? b. Suppose that investors pay 50% tax on dividends and 20% tax on capital gains. If stocks are priced to yield an after-tax return of 8%, what would A,B, and C each sell for? Assume the expected dividend is a level perpetuity. Complete this question by entering your answers in the tabs below. If each stock is priced at $140, what are the expected net percentage returns on each stock to (i) a pension fund that does not pay taxes, (ii) a corporation paying tax at 21% (the effective tax rate on dividends received by corporations is 6.3% ), and (iii) an individual with an effective tax rate of 15% on dividends and 10% on capital gains? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Complete this question by entering your answers in the tabs below. Suppose that investors pay 50% tax on dividends and 20% tax on capital gains. If stocks are priced to yield an after-tax return of 8%, what would A,B, and C each sell for? Assume the expected dividend is a level perpetuity. Note: Do not round intermediate calculations. Round your answers to 2 decimal placesStep by Step Solution
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